Kevin Rudd’s victory as leader of Australia’s governing Labor Party may boost consumer and company confidence before an election that could be held as early as August, according to investors, economists and business leaders.
Australian Prime Minister Julia Gillard scaled back a proposed tax on mining companies to win their support, easing concern economic growth will slow and depriving the opposition of a key election platform.
The Minerals Council of Australia , whose members produce more than 85 percent of the nation’s output, plan to meet Treasury officials this week for talks on the government’s 40 percent resources profit tax proposal.
A year after ousting her predecessor, Prime Minister Julia Gillard is counting on the same political skills she used then to hold her party together as she pushes a climate-change plan opposed by 60 percent of Australian voters.
Julia Gillard, determined to join efforts to reduce global warming, intends to revive cap and trade as Europe puts curbs on the United Nations-run emissions credit market and the U.S. opts out entirely.
Australian Prime Minister Julia Gillard’s tax on iron ore and coal profits raised A$126 million ($130 million) in its first six months, trailing targets and denting her economic credibility seven months before a federal election.
Mining takeovers in Australia, the biggest shipper of iron ore and coal, are set to fall to a five- year low after government plans to increase tax on the industry kicked up a hail of protest from the world’s biggest producers.
Any change to the level at which Australia’s new resources super tax kicks in would be “tinkering at the margins,” Mitch Hooke, chief executive officer of the Minerals Council of Australia, said on Australian Broadcasting Corp. radio today.